Sakshi Gupta, Assistant Professor at Maharashtra National Law University Aurangabad
ABSTRACT
Indian pharmaceutical companies hold considerable advantage over foreign pharmaceutical manufacturers in terms of cost-effectiveness of manufacturing processes as well as research and development.
Sun Pharmaceutical Industries Limited (“Sun Pharma”) and Ranbaxy Laboratories Limited (“Ranbaxy”) set the Indian pharmaceutical industry abuzz with excitement on April 6, 2014 when they released a press statement announcing that they had entered into definitive documents under which Sun Pharma would acquire 100 percent of Ranbaxy.1 The combined entity is now the fifth-largest specialty generics company in the world and the largest pharmaceutical company in India. The scale of operations of the resulting entity is massive, with operations spanning across 65 countries and 47 manufacturing facilities across 5 continents, as well as a sizeable portfolio of specialty and generic products sold across the world, including 629 abbreviated new drug applications. (“ANDAs”)
The Competition Commission of India (“CCI”) by way of its order dated December 5, 2014 approved the Transaction subject to satisfaction of certain conditions. Thus, the transaction has the potential to give rise to a formidable force in pharmaceutical manufacturing leading to wider presence and broader product portfolio. This paper analyzes in detail, the competition law considerations behind the transaction.
